In the latest trading session, American Tower (AMT) closed at $168.51, marking a -1.07% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.65%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.82%.
The wireless communications infrastructure company's shares have seen a decrease of 6.26% over the last month, not keeping up with the Finance sector's gain of 3% and the S&P 500's gain of 1.15%.
Investors will be eagerly watching for the performance of American Tower in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.54, marking a 9.48% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.67 billion, up 4.76% from the year-ago period.
AMT's full-year Zacks Consensus Estimates are calling for earnings of $10.67 per share and revenue of $10.57 billion. These results would represent year-over-year changes of +1.23% and 0%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for American Tower. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, American Tower boasts a Zacks Rank of #4 (Sell).
Digging into valuation, American Tower currently has a Forward P/E ratio of 15.23. This valuation marks a premium compared to its industry average Forward P/E of 11.26.
It is also worth noting that AMT currently has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.54 based on yesterday's closing prices.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 106, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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American Tower Corporation (AMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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